In the world of investing, the long game often pays off, and today I'm delving into two ASX shares that I believe could be golden tickets for the next decade. But before we dive in, let's unpack why long-term investing is my go-to strategy.
The Power of Long-Term Investing
I firmly believe that time is the investor's greatest ally. When you commit to a long-term horizon, you're giving your investments the space to breathe and the potential to compound, which can lead to impressive results over time. Especially in today's rapidly evolving world, where technology and AI are reshaping industries, a long-term view can provide a more stable and strategic approach.
Guzman Y Gomez Ltd (GYG): A Tasty Prospect
GYG is a quick-service restaurant powerhouse that's making waves in Australia and beyond. As of March 2026, they had an impressive 242 locations in Australia, with additional restaurants in Singapore and Japan. But their ambitions don't stop there. GYG is aiming for a massive expansion, targeting 1,000 Australian restaurants within the next 20 years. This aggressive growth strategy could lead to significant sales growth and substantial scale benefits.
In the third quarter of FY26, GYG reported a 19.7% increase in Australian total network sales, reaching $320.4 million. Asian network sales also grew by 15% to $21.5 million. This growth is driven by a combination of strong comparable sales and an expanding multinational network. Over the next decade, I anticipate GYG will continue to expand its restaurant network, increase its market presence, and boost profit margins.
One aspect that particularly excites me is GYG's potential for overseas growth. Their Asian operations are under a master franchise agreement, which could unlock significant royalty income. The market, in my opinion, is underestimating the scale of this opportunity. GYG's projected FY26 underlying operating profit (EBITDA) is $85 million, showcasing an increase in profit margins. With a valuation of 33x FY28's estimated earnings, I believe this fast-growing ASX share is an attractive proposition.
Global X S&P World Ex Australia GARP ETF (GARP): A Global Growth Strategy
This exchange-traded fund (ETF) is an intriguing investment vehicle that provides exposure to a diverse portfolio of global businesses following the 'growth at a reasonable price' (GARP) strategy. By investing in growing businesses at a good price, this ETF aims to deliver excellent long-term returns.
The GARP ETF has a meticulous selection process, considering three key factors. Firstly, it seeks companies with strong growth characteristics, evidenced by a good pace of 3-year sales and earnings growth. Secondly, it looks for 'value', as indicated by the price/earnings (P/E) ratio. Finally, the strategy focuses on business quality, evaluating financial leverage and return on equity (ROE). ROE is a critical metric, as it tells us how efficiently a company is generating profits relative to shareholder investment.
Since its inception in September 2024, the GARP ETF has delivered an average return of 16.8%. While past performance is no guarantee of future results, I'm optimistic about this strategy's potential to continue delivering solid returns over the next decade and beyond.
A Broader Perspective
These two investments are just the tip of the iceberg when it comes to long-term ASX opportunities. The beauty of a long-term investment strategy is that it allows you to ride out market fluctuations and focus on the bigger picture. It's about identifying companies with solid fundamentals, growth potential, and an ability to adapt to changing market dynamics. Whether it's a fast-growing restaurant chain or a well-diversified ETF, the key is to find investments that align with your long-term goals and have the potential to deliver sustained growth.
In my view, these two ASX shares offer an exciting glimpse into the potential for long-term wealth creation. It's a reminder that investing is not just about the here and now, but about laying the foundation for a prosperous financial future.
